Group Interim Report: Smart People, Smart Phones


-Timur Khamitov (995666989) timur_kt@hotmail.com
- Tarek El Saad (994959365) tarek.elsaad@utoronto.ca
- Maggie Ngo (994830634) maggie_ngo@hotmail.com
- Tina Dang (995446637) tinana.dang@gmail.com
- Michael Mckerracher (995444988) hu_gas@hotmail.com

Part 1 - Situation Analysis

a) Historical Overview/Background.

The Blackberry is a hand-held wireless device introduced in 1999 as a two-way pager but in 2002 released the Blackberry phone that was heavily compatible with many important and upcoming technologies such as internet browsing, email and internet faxing to name a few. The smart phone became a key convergent technology whose main strength from day one has been the e-mail function; a very essential method of modern communication used by all corporations. Research in Motion (the developer of the BlackBerry) has created a rather unique and effective software ('Blackberry Connect') used for the email function on the phone, this software has now been spread to other phones besides the blackberry, for e.g: Palm Treo. The success for the ability to dominate in the e-mail sphere has however been partly brought about due to the hardware aspect of the Blackberry; the 'thumbing' QWERTY keyboard as well as the roller ball have made e-mail and browsing feasible on a hand held device.

Blackberry's initial target/strategy was to create packages for corporations that would incorporate the Blackberry e-mail function through the Black Berry Enterprise Server (BES) which enabled entire organizations to implement information systems all connect through the Blackberry as well as their regular computer work stations. The implications of this was a social step forward in speed and inter-connectedness. Corporations that implemented the BlackBerry were able to achieve instantenous exchanges of emails between their staff improving response time and efficiency drastically.
The Blackberry also created a wave of reliability on it by its users who would perform most communicative functions through the phone. The term 'Crackberry' was used signifying this new reliance or rather addiction to the smart phone technology.

Diagram 1
bb_mds_arch_large.gif
The diagram above shows the basic architecture in place to enable Blackberry's superior ability to integrate internet solutions into a business.

b) Describe technology itself. How is it used? Where etc? (Mike)
The Blackberry is more than just the phone; the Blackberry OS offers business users a service to increase their productivity. It is a communications device allowing users to bring their work outside of the office and the most important function of the Blackberry OS is the email support. The Blackberry offers an extensive email client supporting up to ten of the following clients: Internet Message Access Protocol (IMAP) and Post Office Protocol (POP3) as well as Exchange email support[1]. The OS also offers a full HTML browser, as well as support for cloud applications (internet-based apps). The calendar application offers business users a simple and clean interface to view upcoming appointments and meetings. The phone’s database for contacts is thorough, offering users the ability to put sort contacts by; email address, two work numbers, two home numbers, a mobile number, pager, fax, and other phone number. As well as home and work addresses, birthdays, anniversaries, and notes about the contact. Both the calendar and contact options will synchronize either with Blackberry’s desktop software or with Microsoft Outlook.

On the hardware side, a full QWERTY keypad makes text entry easier and smoother than a traditional T9 (number pad) phones. Many of the new, Blackberry’s offer the ability to roam on both CDMA and GSM networks, and it incorporates 1x EVDO, HSDPA, Edge, North American, European/Asian GSM bands, and Dual Band CDMA[2]. These features allow the globetrotting executive to have access to their important data, with almost full worldwide coverage.

The advancement and continued refinement of the Blackberry OS and hardware have shaped the device into the business Swiss Army Knife of the 21st century. “By developing and integrating hardware, software and specific services, the BlackBerry is distinctive in that it provides end-to-end solutions for users seeking access to email, voice, messaging, and both internet and intranet applications[3].” This device is used by many different types of organizations mostly it attracts enterprise users and prosumers (ambitious, driven, career focused people)[4], as well a government officials. Specifically President Obama changed security measures put in place by the N.S.A to keep his Blackberry[5].

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1. "BlackBerry - PDAs- Mobile PDA and PDA Cell Phone Devices at BlackBerry.com." BlackBerry - Smartphone - Smart Phones at BlackBerry.com. 10 Feb. 2009 http://na.blackberry.com/eng/devices/features/.
2. "BlackBerry - PDAs- Mobile PDA and PDA Cell Phone Devices at BlackBerry.com." BlackBerry - Smartphone - Smart Phones at BlackBerry.com. 10 Feb. 2009 http://na.blackberry.com/eng/devices/features/.
3.BLACKBERRY: Lessons in Strategic Positioning,” Baines, Fill, & Page. Marketing 1, Chapter 5. The Management School Loughborough University.
4.BLACKBERRY: Lessons in Strategic Positioning,” Baines, Fill, & Page. Marketing 1, Chapter 5. The Management School Loughborough University.
5.Buchanan, Matt. "The President's Email: The Secrets of Obama's Email." Gizmodo, the Gadget Guide. 2 Feb. 2009. 10 Feb. 2009 <http://i.gizmodo.com/5144129/the-secrets-of-obamas-email>.

c) Detailed Example of technology at use in a specific organization. (Tina)

d) Who developed the technology and who are the major players in its success?

Research in Motion (RIM), the manufacturers and developers of the Blackberry are based in Waterloo, Canada and are run by CEO/founder Mike Lazaridis and Jim Balsille. These two people are in essence the driving force behind Blackberry's success. A brief biography of both:

Jim Balsillie
Since 1992, Jim Balsillie has been co-CEO at Research In Motion (RIM), maker of the world renowned BlackBerry wireless solution. At RIM, Jim is responsible for driving corporate strategy, business development, marketing, sales, and finance.
In 2002, Mr. Balsillie founded The Centre for International Governance Innovation (CIGI), a world-class global research institute focused on the restructuring of international governance. In 2007, Mr. Balsillie announced the creation of the new Canadian International Council (CIC) of which he is the Chair. In 2008, he founded the Balsillie School of International Affairs.
Mr. Balsillie is a graduate of the University of Toronto and the Harvard Graduate School of Business. He is a chartered accountant and a fellow of the Ontario Institute of Chartered Accountants. He also holds numerous honorary doctorate degrees. (www.rim.org)
Mike Lazaridis
Mr. Lazaridis is known in the global wireless community as a visionary, innovator, and engineer of extraordinary talent. He traces his passion for his work to his hometown of Windsor, Ontario where his love of science and fascination with electronics were nurtured in supportive family and school environments.
As President and Co-CEO of Research In Motion (RIM), a company Mr. Lazaridis founded while a student at UW, he is responsible for product strategy, research and development, product development, and manufacturing. Mr. Lazaridis is also a leader in his community and a passionate advocate for education and scientific research. Mr. Lazaridis supports his community and country through generous philanthropic gifts made possible by his success in business.
He has donated $75 million to UW to help establish an Institute for Quantum Computing. Mr. Lazaridis also personally invested $150 million in the Perimeter Institute for Theoretical Physics (PI) and, through his leadership and tireless effort, has generated more than $100 million in additional private and public sector funding for this world leading centre of scientific excellence. PI is home to a growing cluster of international scientists who are pushing the limits of our fundamental understanding of space, time, matter and information. Since opening in 2001, the institute has attracted the attention of the world’s scientific research and educational outreach community. The independent centre is now associated with over 30 Canadian universities and a growing number of institutes world-wide. (www.rim.com)
Together, these two men are building an entire empire and culture that enables people to live and work at a different pace.The vision of Mike Lazaridis allowed Blackberry to get an early start in a market which they are slowly but surely beginning to dominate.

e) Competing technologies? Did this technology displace any technology? Will it? (Mike)
Given the rapid penetration of Blackberry into the business market, many competing technologies have emerged to cut into Blackberry’s market share. Namely, phones loaded with Windows Mobile Apple’s Iphone, Google’s Android OS, and Nokia’s open sourced Symbian OS. Each of these technologies interacts with end users in different ways. Windows Mobile is geared to make Smart Phones more windows-esq, by bringing a familiar GUI, and file system[1],. Apple prides itself with easy of use and high quality design, both of which are at the forefront of the Iphone’s OS[2]. The Android is a bottom-up type of information system, by providing an open platform for developers Google is hoping to have an OS with a robust set of third part applications[3]. Similarly, Nokia’s Symbian is designed to coax developers to create applications for their devices, increasing their market share in Smart Phone field[4]. The market place for smart phones is becoming increasingly over populated. With so much competition, Blackberry has had to adapt, by improving user interfaces and focusing on the design of the body of the phone. Recently the market has seen the introduction of the Blackberry Storm, which uses a touch interface to try to draw in the more tech-savvy customers. All of these services offer the same core features, email support, web browsing, calendar applications, the real differences lie within the GUI of the device and marriage of hardware and software. Android and Windows mobile are both OS’ designed without a particular piece of hardware in mind. Where as Blackberrys, the Iphone, and Nokia’s Symbian all have a distinct advantage by building an OS around specific types of hardware, thusly creating more reliable and less buggy devices.
It is hard to say if this technology has displaced any technologies or is merely the evolution of several devices. The Blackberry started out as a two pager, and has since evolved to a full-fledged business tool. It is a culmination of pagers, cell phones, and an array of formerly computer only services. Its biggest advancement is removing the shackles once placed on the computer only email access. We suspect that for some users it has likely completely displaced their desktop emailing client; however, the Blackberry is not really designed as an alternative to it but rather a compliment to email services such as Microsoft’s Outlook. What the future holds for this technology is difficult to assess. With faster mobile processors, improved wireless data transfer speeds, and overall better devices it is entirely possible that emailing and calendar services move entirely to the smart phone. This would however depend entirely on several different industries making vast improvements to their technologies and infrastructures.

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[1] "Mobile Phones | Choose the Best Phone for You | Windows Mobile." Microsoft Corporation. 10 Feb. 2009 <http://www.microsoft.com/windowsmobile/en-us/default.mspx>.
[2] "IPhone." Apple. 10 Feb. 2009 <http://www.apple.com/iphone/>.
[3] "Android." Google Code. 10 Feb. 2009 <http://code.google.com/android/>.
[4]Symbian OS | The open mobile operating system." 10 Feb. 2009 http://www.symbian.com/index.asp.

f) Strategy and tactics used by developers of technology (see outline for more details on this part). (Tina)

Part 2- Swot Analysis



Strengths (Internal factor)
- Blackberry has an exceptional security system:
The BlackBerry Enterprise Solution protects the integrity, privacy and accuracy of corporate information. This is carried out by its strong encryption, allowing transits between the BlackBerry Enterprise Server and BlackBerry smartphones. This exceptional security system is built in all BlackBerry phones, giving them a competitive advantage over companies like Palm who requires users to pay for their expensive security system. The BlackBerry Enterprise Solution has always considered data sensitive information in corporations. It features an end-to-end security model designed to seamlessly protect your corporate information from attack, as users send and receive email and access data wirelessly (BlackBerry Security 2009).
- In a series of test BlackBerry RIM was compared to Microsoft Direct Push. Researchers found Blackberry remain significantly more efficient in its network usage than their competitors, Microsoft Exchange Server (using Window Mobile 5). They found lower network loading when using the operator of Window Mobile 5. Also the BlackBerry had a better user experience with e-mails and attachments. They were available much faster and had improved battery life (Rysavy Research 2008).
- Blackberry offers multiple email account integration, this means you can add up to 10 different email addresses in the blackberry smartphone. The convenience with the push delivery and mailbox synchronization will allow you to use popular Internet base email accounts. Getting your mail updated automatically on the go will become increasingly easy with this email synchronization. The email services will allow you to open any attachments for viewing purposes.
- Blackberry also offers the text message service of SMS and MMS where you can send out messages quickly. This is a great substitute for emailing on the BlackBerry. Multimedia Message (MMS), allows you to record voice notes, sending them through attachments in an email.
- The BlackBerry also improves communication by allowing all your emails and text messages to be spellchecked for errors. It also provide a copy and paste option. The full Qwerty keyboard is helpful for organizations to send messages quickly either through email or text messages anywhere they may be.
- The BlackBerry also offers you instant messaging application; this provides an easy integration for new users of the blackberry to still use their most popular IM on their smartphones.
Weakness (Internal factor)
- The dependence of BlackBerry email communication in organizations can create a weakness. BlackBerry has already been through outage due to software upgrade and technical issues. Business people were left with no email access for hours, some people felt BlackBerry was unreliable and other thought their competitors were the superior smartphone (Mayerowitz 2007).
- Privacy issues are also a concern for Blackberry users. All the data sent out and to a smartphone goes through the BlackBerry enterprise server database. This maybe a great concern to business sensitive and private information. For example, the lawsuit involving CIBC management were using the BlackBerry email service to message PIN numbers, it was uncovered that this information was not kept private and shows how BlackBerry innovative platform for communication has increase privacy concerns. If a corporation has increase sensitive information, using the BlackBerry as a medium of data transfer may not be wise, as it may expose the private information (Vijayan 2005).

Opportunities

• Blackberrys have an edge over their competitors as there lack of an enterprise tech-support group at Apple. These tech-support groups can help small businesses if faced with any problems with the device. Competitors like Apple do not have a department to help with business solutions which gives RIM a competitive advantage over their competitors. By focusing on this aspect and improving it, RIM can ensure they can capture a good portion of the market as their closest competitor is falling behind in that category. This will help control a segment of the market which can be very profitable for the company.

• On top of the built in security service already available on Blackberrys (e.g. e-mail encryption) SMoblie Systems has launched a ”Security Shield” for blackberries which puts them ahead of their competition. Not just only do users have the basic security system (which is not provided in Microsoft’s palm device) users (more importantly business users) have more control over the information on their systems. If the device is stolen the “Security Shield” can ensure that sensitive data is still safe (with a tool which enables stolen/lost phones to have their memories erased, along with sensitive data and contacts) it also backs up the information so that non of the important information is lost forever.

• LifeInPocket is a software which can be installed on a blackberry which allows users to have GPS on their device (which was previously only available on the IPhone). It also enables users to sync with their email accounts and other devices. This helps tackle the problem from the IPhone which helped it have a competitive advantage over BlackBerry’s

Threats

• Blackberry’s are not the only smart phones available on the market. RIM has competition from big corporations like Microsoft and Apple which also have their own smart phones with some features which cannot be found on BlackBerry’s. One example is the fact that IPhones support WiFi while blackberry’s still do not. This gives IPhone an edge over BlackBerries as users who are on the go may find this as the decider of using the product.

• The IPhone also has a larger and higher quality touch screen on the device, which enables users to view documents and PowerPoint presentations. This allows the user to view documents easily, which is uselful for a business person on the go, especially if they are at a meeting away from the office. It also enables them access to these documents on the go which would enable them to be more efficient compared to their competitor.

• Apple is starting to target corporate users after securing a good portion of the consumer market. Apple has included a host of new features in the new IPhone which cater to corporate users needs, namely access to Microsoft Exchange Active Sync which will provide them with secure over the air e-mail, contacts, calendars and global address lists. IPhone has also announced that it will soon also support Cisco IPsec VPN, which will ensure high levels of IP-based encryption for transmission of sensitive corporate data. These two features can cause problems in the future for RIM as they would lose the edge, which they had over IPhones.

• Security issues have occurred in the past with BlackBerry devices. Even with security measures already inplace in blackberry’s they have to keep on being updated as this can become a future threat to the company. If a crack is found in the security system this can cause problems for the company as buiness users may not trust the company anymore. Even though Blackberry’s do already have highly secure devices it is important to mention security issues as a future threat. the reasoning for this is that it is always a possibility of a security breach. Security should be one of the major concerns for RIM as it can be a feature which can make or break the acceptance of the device.

Matching exercise:
Strength = Security. Opportunity = built in security feature.
One of RIM strength is that it has included a highly secure security system for free with every blackberry. This gives RIM an advantage over its competitors as they do not have this service. Security is a big concern especially for corporations. By having the security features available for free companies would be more inclined to use the product as they are getting more value for money and also getting a very important feature for free.

Strength = Multiple Email accounts. Opportunity = LifeInPocket
With the use of this third party software users can easily sync the different emails and send out different messages easily from different accounts, this adds to the productivity of a corporate user. By having this feature available, users of this software, (in particular Blackberry users) can work a lot more effectively and wont have to do time consuming tasks like sign in and out of each email account to send the same message.

Preliminary Recommendations
By admission of Jim Balsillie (RIM’s C.E.O) Blackberry’s new reality is that of a beta culture[1]. This is not necessarily a bad thing for consumers, as Information system and technologies are far from perfect. They have a great number of areas in need of improvements to truly make them a replacement for desktop computing. RIM already has a solid system for their “Push” email system, as long as they can ensure safe and reliable access to the servers, users will have a hassle-free way of accessing their information when and where they need it. Blackberry needs to continue to develop and refine their operating system to ensure that it fully meeting the needs of the ever-changing consumer base and technological environment. Our recommendation to RIM would be to develop the physical hardware more. While the experience is head and shoulders above the technology from 5 years ago, it is by no means a perfect system. Typing long messages, on a cramped keypad with a display no larger that 2 inches becomes a cumbersome experience. The only way for a device such as this to be truly revolutionary is for it to act as an extension of the body, rather than a foreign object. As can be seen by early demonstrations of Palm upcoming Pre and their Web OS, these ideas are already becoming a reality; it is up to the developers of Blackberry, now to expand the capabilities of these devices in order to make it more competitive.

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[1] Buchanan, Matt. "BlackBerry Maker CEO: Buggy, Busted Ass Smartphones Are the "New Reality"" Gizmodo, the Gadget Guide. 26 Jan. 2009. 10 Feb. 2009 http://i.gizmodo.com/5139147/blackberry-maker-ceo-buggy-busted-ass-smartphones-are-the-new-reality.

Sources (everyone do their sources properly!)


www.rim.com - Reasearch in Motion official site.

Apple iPhone to take on BlackBerry? 25 (2008): 20. 10 Mar. 2008. Network World. Southborough. 8 Feb. 2009 <http://proquest.umi.com.myaccess.library.utoronto.ca/pqdlink?did=1452396541&Fmt=7&clientId=12520&RQT=309&VName=PQD>.

Seizing the opportunity 25 (2008): 24-26. 4 Aug. 2008. 9 Feb. 2009 <http://proquest.umi.com.myaccess.library.utoronto.ca/pqdlink?did=1536187241&Fmt=7&clientId=12520&RQT=309&VName=PQD>.

New iPhone Still Faces Corporate Disconnects 42 (2008): 14. 16 June 2008. 8 Feb. 2009 <http://proquest.umi.com.myaccess.library.utoronto.ca/pqdlink?did=1500321571&Fmt=7&clientId=12520&RQT=309&VName=PQD>.

Letter. 9 Dec. 2008. RoadComm, Inc. 9 Feb. 2009 <http://proquest.umi.com.myaccess.library.utoronto.ca/pqdweb?did=1606631401&sid=2&Fmt=3&clientId=12520&RQT=309&VName=PQD>.

Letter. 16 Dec. 2008. Science Letter. 9 Feb. 2009 <http://proquest.umi.com.myaccess.library.utoronto.ca/pqdweb?did=1610452511&sid=1&Fmt=3&clientId=12520&RQT=309&VName=PQD>.


Rysavy Reseach LLC. Wireless E-Mail Efficiency Assessment. 21 April. 2008. <http://na.blackberry.com/eng/ataglance/get_the_facts/Rysavy_Email_Efficiency_Study_2008.pdf>

“BlackBerry Security”. Research In Motion. Feb 2009. <http://na.blackberry.com/eng/ataglance/security/>.


Vijayan, Jaikumar. Lawsuit Reveals an Open BlackBerry; Canadian bank submits intercepted PIN messages as evidence against ex-execs. 17 Jan 2009. http://www.computerworld.com/newsletter/0,4902,98984,00.html

Mayerowitz, Scott. Major BlackBerry Outage Leaves Millions Without E-Mail. ABC News Business Unit. 18 April. 2007. http://abcnews.go.com/Business/Story?id=3052158&page=1

NOTES and USEFUL links

http://na.blackberry.com/eng/ataglance/get_the_facts/ ------------------> Bunch of cool links on there. Independent analysis of the tecnology.

Since we're a group of 5:

1. For the Group Project Interim Report:
a. Your group will submit a 12-15 page report (not including references);
b. Your Part 2 – SWOT analysis will include a Matching exercise:
i. Match the strengths to opportunities – choose one strength and match it to one or two opportunities – back it up with secondary sources (i.e. justify and discuss);